Major Japanese Bank Mizuho To Kick Off Its Own Stablecoin
The Mizuho Financial Group – one of Japan’s biggest banking firms – has concluded plans to introduce its own stablecoin to be used for transactions and payments by 1st of March, 2019. The stablecoin was created based on a partnership with more than a few financial institutions.
The financial institutions in collaboration with Mizuho, total about 60 and jointly hold over 56 million different customer accounts. J-Coin, as the new stablecoin is called, will be directly connected with all the accounts and will bridge them with their own digital wallets.
Mizuho And J-Coin’s Plan For The Crypto Market
By the end of last year, the Mizuho Financial Group announced that it controlled more than $1.8 trillion in customer assets. The company has decided to use this success to solidify its position in all markets including the cryptocurrency market.
J-Coin, it is said, will be handled by an app developed for the currency itself. Called the J-Coin Pay, this app will let consumers use regular QR codes to make everyday retail transactions. Mizuho also plans to set the price of their stablecoin at 1 yen per unit and promises that transactions between regular bank accounts and the J-Coin wallets will be free of all charges.
According to Tatsufumi Sakai, the CEO of Mizuho Financial Group,
“The arrival of all these new entrants [into the digital payments space] is eroding the common-sense notion that payment services are provided by financial institutions.”
It is important to note that this isn’t the first time a Japanese company has come out with their own method of payment using crypto and blockchain frameworks. Rakuten – popularly called Japan’s own Amazon – is a prime example.
How Mizuho Plans To Attract Potential Customers
It has been stated that potential customers of the J-Coin cryptocurrency will have no need to endure credit checks and usage will also not be pegged to adult users only. This means that even customers who are not yet up to the age of 18 will be allowed to use the service.
For real world and personal applications, the plan for J-Coin is to have such a wide variety of possible transaction categories that people can share bills and make other joint payments.
Mizuho also has plans to connect with stakeholders in retail businesses such that these key players join the platform and hopefully get their customers to sign up as well. Some of the prospective companies include FamilyMart – which is a Japanese superstore, Bic Camera – a store for electronics and the East Japan Railway, a major transport company. Mizuho hopes to attract about 300,000 different stores and consequently have 6.5 million users with them, at the very least.
Furthermore, the company is also seeking a profitable partnership with Alipay – a third-party mobile and online payment platform owned by Alibaba. The hope is to help J-Coin get on the good side of more and more stores. Mizuho also promises that all commercial outfits that use J-Coin will be charged a lot less than the average charge for credit card services.